Infineon to build Europe's first high-volume gallium nitride chip plant
Infineon plans a 1.1 billion euro investment in its Villach site, with 319 million euros in EU Chips Act funding. Production is scheduled to start at the end of 2027.
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what happened
According to Reuters, Infineon Technologies has announced a production facility in Europe for gallium nitride power semiconductors built on 300-millimetre wafers. The company describes it as the world's first high-volume facility of its kind.
The investment in the Villach site in Austria amounts to 1.1 billion euros. The plant is meant to serve as a global competence center for power semiconductors. Funding of 319 million euros will come under the European Chips Act, a program aimed at strengthening Europe's technological sovereignty.
Production is scheduled to start at the end of 2027.
why it matters
The project matters for the power electronics market, where demand grows for more efficient components used in electric vehicles, charging stations and energy systems. For Infineon shares and the European chip sector, it is a long-term signal of capacity expansion rather than an immediate change in financial results.
market impact
Infineon and European chipmakers: long-term capacity expansion in power electronics.
tags
instruments
sources
- Infineon - Establishes Production Facility For Gallium Nitride Power Semiconductors On 300-Millimetre Wafers In Europe — Reuters, 27 October 2026 at 07:03 UTC
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